USD/JPY faces pressure as Japan targets debt reduction for fiscal stability

USD/JPY remains under scrutiny as Japan's Finance Minister Katayama emphasized the government's commitment to fiscal sustainability and debt reduction. With Japan maintaining the highest debt-to-GDP ratio among advanced economies, the minister highlighted plans to boost market confidence by lowering this metric. This fiscal focus intertwines closely with monetary policy decisions and could influence Bank of Japan's future rate normalization path. The emphasis on fiscal credibility comes as policymakers balance support measures for households against growth concerns. Markets are monitoring whether Japan's debt reduction efforts might accelerate BOJ's shift away from ultra-loose monetary policy, potentially strengthening the yen. Technical traders should watch key USD/JPY levels around 150.00-152.00 range, as fiscal consolidation signals could trigger yen appreciation if markets perceive reduced need for monetary accommodation.